Assume that the Best Buy store in Exercise 3 has a policy of ordering cell phones from the supplier in lots of 500. Weekly demand for cell phones at the store is normally distributed, with a mean of 300 and a standard deviation of 200. The supplier takes two weeks to supply an order. If the store manager is using a continuous review policy and targeting a fill rate of 99 percent, what safety inventory should the store carry? What should its ROP be?

Data From Exercise 3

Weekly demand for cell phones at a Best Buy store is normally distributed, with a mean of 300 and a standard deviation of 200. The supplier takes two weeks to supply a Best Buy order. Best Buy is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inventory of cell phones should Best Buy carry? What should its ROP be?